Answered: One of the primary uses of a cost of…

One of the primary uses of a cost of production report is to assist management in controlling production costs. True or False?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 8DQ: How are cost of production reports used for controlling and improving operations?

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

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Similar questions

Why would management be concerned about the accuracy of product costs?
What is the most important purpose of the cost of production report? How are these reports used for controlling and improving operations?
What is the most significant function of a cost of production report, and why is it important? What role do these reports play in the process of regulating and enhancing operations?
Cost accounting is an area of accounting concerned with cost determination, cost control and cost analysis. Which of the following is a description of cost control? a. Refers to the use of cost data by management in decision making. b. None of the above c.Refers to the comparison of standards set for costs per unit and with the figures per actual operations so that remedial measures may be adopted if needed. d.Refers to the accumulation of cost data by products, process or services to be able to arrive at a unit cost.
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What is the primary goal of the cost-of-production report? What is the purpose of these reports in terms of regulating and enhancing operations?
What features of the cost accounting system would be expected to prevent the omission ofrecording materials used in production?
TRUE OR FALSE Management accounting is a subset of cost accounting. Cost accounting is a subset of both management and financial accounting. A primary purpose of cost accounting is to determine valuations needed for external financial statements Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles. The act of converting production inputs into finished products or services necessitates cost accounting.